"It Would Be an Undue Hardship to Require People Whose

question 7

Multiple Choice

"It would be an undue hardship to require people whose income is below $15,000 per year to pay income taxes." This statement reflects which of the following principles for a tax?

• A) benefits-received
• B) inexpensive-to-collect
• C) ability-to-pay
• D) fairness of contribution

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Definitions:

Expected Value

The long-run average value of repetitions of the same experiment or random trial, indicating the central tendency.

Random Variable

A variable that can take on numerical results from a random event or experiment.

Standard Deviation

An indicator of the spread of a dataset relative to its mean, used to quantify the degree to which individual data points differ from the average.

Monthly Production

The total output or production of a manufacturing process or facility in a single month.